The USD is mixed with some late day dollar selling in the major currency pair
The USD is mixed with a modest downward bias to start the last trading day of the week. The EURUSD has made a move above the falling 100 hour MA at 1.1398 and bumped up to 1.1412. If the buyers are going to make a run to the 200 hour MA, they need to keep the price above that MA level. The 200 hour MA ia at 1.14525.
The USDJPY is also trying to crack it’s 100 hour MA. It comes in at 161.66 and the price is currently just below that level at 161.63. The price has traded above and below the 100 hour MA making it difficult for traders (and showing the reluctance to go lower). Seller are dying for a correction at least to the 200 hour MA at 161.24 and others to 160.00 Afterall, that was the line in the sand for Department of Finance in the past. But the price has been above that level for 1 days now.
The GBPUSD is also above the 100 hour MA at 1.3200. The price did fail yesterday on the run above, but is retrying today with more success. The price is trading at 1.3218. Stay above and the 200 hour MA comes in at 1.3252.
The US stocks are mixed with the Don up 77 points but the broader S&P and Nasdaq lower. Chip stocks are low with Micron down -4.7% after its sharp run higher yesterday. Nvidia is lower as well.
- Intel -3.29%
- Broadcom -1.65%
- AMD -3.56%
- Texas instruments -2.29%
The market is closely watching the South Korean stock market for clues on broader risk sentiment after the benchmark KOSPI Composite Index suffered a near 10% plunge on Tuesday. After rebounding for two sessions on the back of stronger-than-expected earnings from Micron Technology, the index stumbled again today, falling 5.81%. Even so, the KOSPI still managed to finish the week down a little more than 7%.
Shares of Samsung Electronics have also become an important barometer for investor sentiment. Samsung closed at 328,000 won today, down sharply from its previous close of 358,500 won, after trading in a wide range between 321,500 and 356,500 won. The stock tumbled 9.21% on the session despite the company preparing to unveil a massive 1,000 trillion won semiconductor investment plan on June 29. Investors appear to be treating the announcement as a classic “sell-the-news" event.
The week’s trading action has been a rollercoaster ride. Tuesday’s steep declines were followed by sharp rebounds on Wednesday and Thursday that erased much of the earlier damage. Despite today’s setback, Samsung shares are still trading higher for the week, underscoring just how volatile sentiment has become in the semiconductor sector.
The North American session will feature a handful of second-tier U.S. economic releases before attention turns to the final June University of Michigan sentiment data. At 8:30 AM ET, traders will get the Advance Goods Trade Balance, which is expected to show a wider deficit of -$85.0 billion versus -$83.01 billion previously. Also at that time, the market will receive Wholesale Inventories and Retail Inventories ex-Autos data for May, both expected to remain unchanged at 0.6%. These inventory reports can influence GDP tracking estimates for the second quarter, although they typically only generate a significant market reaction if the results deviate sharply from expectations.
At 10:00 AM ET, the focus shifts to the final University of Michigan Consumer Sentiment Index for June, which is expected to improve to 50.0 from 48.9 previously, reflecting a modest rebound in consumer confidence. Investors will also pay close attention to the survey’s inflation expectations components. The 1-year inflation expectation was previously at 4.6%, while the 5-year inflation expectation stood at 3.4%. Given the Federal Reserve’s heightened sensitivity to inflation expectations, any meaningful move higher in these measures could reinforce the market’s view that policymakers may need to keep interest rates higher for longer, while softer readings could help ease some of those concerns.
This article was written by Greg Michalowski at investinglive.com.